UK pound was found struggling today, which can be attributed to the figures about the government borrowing. As the government is gearing up for the new budget, it’s quite clear that government is not considering for any stimulus packages. The sterling is rolling lower than the Euro and the US dollar.
The borrowing figures for the British government was released, which showed a total borrowing of 110 billion pounds, year to date in the Feb. This is one of the record borrowings for the British government and has raised much of the concerned about the abilities of the British policy makers in framing stimulated growth policies for UK.
Moreover most of the people are thinking that Britain’s condition is much worse than what has earlier been anticipated. And with so much of the money being borrowed, many doubt that much could not be done in terms of offering tax breaks or increasing spending, to virtually increase the economic growth. The situation doesn’t look like that much can be done, but it may be possible that another round quantitative facilitation may appear from the Bank of England.
The uncertainty and concern of the trouble about the British government has caused lowering of Pound today.
At 13:15 GMT GBP/USD rolled to 1.5842 from 1.5858. EUR/GBP is also lower at 0.8350 down 0.8339.